{"id":12235,"date":"2015-09-14T06:10:42","date_gmt":"2015-09-14T11:10:42","guid":{"rendered":"http:\/\/olduvai.ca\/?p=12235"},"modified":"2015-09-14T06:10:42","modified_gmt":"2015-09-14T11:10:42","slug":"goldman-sachs-perpetuator-of-the-feds-jihad-against-savers","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=12235","title":{"rendered":"Goldman Sachs\u2014\u2014-Perpetuator Of The Fed\u2019s Jihad Against Savers"},"content":{"rendered":"

Goldman Sachs\u2014\u2014-Perpetuator Of The Fed\u2019s Jihad Against Savers<\/a><\/h3>\n

You can\u2019t blame Janet Yellen entirely for the growing prospect that the Fed will take a powder on Wednesday and opt for the 81st straight\u00a0month of ZIRP. After all, she\u2019s basically a fuddy duddy school marm caught in a 1970s labor economics time warp\u2014\u2013a branch of the \u201chome economics\u201d taught by John Maynard Keynes after he turned protectionist in 1930.<\/p>\n

Accordingly, she does\u00a0apparently believe that the US economy resembles a giant bathtub, and that it is the Fed\u2019s job to see that employment and output rise full to the brim.\u00a0Nor does\u00a0that mission\u00a0take much special doing\u2014\u2014-at least\u00a0according to the primitive macroeconomic\u00a0plumbing theories\u00a0of Keynes\u2019 disciples like her PhD supervisor, Professor\u00a0James Tobin of Yale. Just\u00a0crank the interest rate valve lower\u00a0until the\u00a0economic ether\u00a0thereby\u00a0released called aggregate demand works its magic.<\/p>\n

Indeed, the\u00a0good professor\u00a0did help ignite a rip-roaring inflationary boom\u00a0in one country during the Kennedy-Johnson years. Back then\u00a0the world economy was still segmented and unmonetized enough to at last partially\u00a0encompass a closed economy\u00a0model of state managed pump-priming. That was especially possible\u00a0because more than a billion potential workers were trapped in the economic Gulag of Mao\u2019s China and the\u00a0post-Stalinist Soviet bloc.<\/p>\n

Never mind that today\u00a0the US GDP\u00a0bathtub leaks like a sieve and that massive trade, capital and financial flows transmit economic and financial impulses from around the globe. Accordingly, the marginal price of labor is set in the rice paddies of China, the\u00a0call centers of Bangalore, the temp agency body shops of America\u00a0and on the\u00a0\u201cbid for gigs\u201d sites of the worldwide web.<\/p>\n

\"call<\/p>\n

The Bureau of Labor\u00a0Statistics, which is apparently the\u00a0Keynesian chapel where Yellen\u00a0worships,\u00a0captures none of this; it ought to\u00a0be put in the Francis Perkins memorial museum\u00a0along with souvenirs from the WPA and FDR\u2019s\u00a0Fair Labor Standards Act of 1938.<\/p>\n

…click on the above link to read the rest of the article…<\/div>\n","protected":false},"excerpt":{"rendered":"

Goldman Sachs\u2014\u2014-Perpetuator Of The Fed\u2019s Jihad Against Savers You can\u2019t blame Janet Yellen entirely for the growing prospect that the Fed will take a powder on Wednesday and opt for the 81st straight\u00a0month of ZIRP. After all, she\u2019s basically a fuddy duddy school marm caught in a 1970s labor economics time warp\u2014\u2013a branch of the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5979,2120,303,305,376,1154,431,458,4915,2212],"class_list":["post-12235","post","type-post","status-publish","format-standard","hentry","category-economics","tag-contracorner","tag-david-stockman","tag-fed","tag-federal-reserve","tag-goldman-sachs","tag-interest-rate-policy","tag-interest-rates","tag-john-maynard-keynes","tag-saving","tag-us-gdp"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12235","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12235"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12235\/revisions"}],"predecessor-version":[{"id":12236,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12235\/revisions\/12236"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}